Obama: Warren Buffett is right on the money

The people gathered at a Monday afternoon town hall in rural Minnesota don’t make as much money as Warren Buffett, but they likely pay a higher tax rate than him, President Barack Obama said during his appearance, citing the billionaire investor’s op-ed in The New York Times to make the case that Washington needs more revenues.

“Now, I may be wrong, but I think you’re a little less wealthy than Warren Buffett, but that’s just a guess,” Obama said to laughter along the waterfront in Cannon Falls.

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Even so, those who turned out to hear Obama are likely taxed at a higher rate than the 17 percent Buffett said he pays, the president said.

“You don’t get those tax breaks, you’re paying more than that,” Obama said, using Buffett’s argument to make the case that the congressional supercommittee needs to find ways to bring in additional revenues to help reduce the deficit.

Obama has often cited Buffett’s call for higher tax rates on the rich, and he seized on the Monday op-ed in the Times and the coverage it’s gotten on the Web and on cable news to do so again.

“He pointed out that he pays a lower tax rate than anybody in his office, including the secretary,” the president added. “He figured out that his tax bill, he paid about 17 percent. And the reason is because most of his wealth comes from capital gains.”

Campaigning in New Hampshire on Monday, Mitt Romney rejected Buffett’s argument, saying it would hurt businesses.

“He is taxed at the personal income tax rate, so if we raise taxes on wealthy people that means businesses see their taxes go up. I don’t want to raise taxes on employers. Certainly not now. With the economy the way it is,” Romney said.

Readers' Comments (51)

In the matter of jobs, why should any believe that American corporations would ever want to venture beyond their current "right d" optimal s again, especially when the need to satisfy Wall Street and the share holders requirements and demands, that they continue to outsource and purchase goods and services to satisfy their profit need rather than produce in-house. Since the days of drama that lead to the Y2K occurrence, this direction of renewing exploitation of production and invention has become the re-refreshed corporate path.... sadly, public works projects now appear to be the only means to prosperity. Of course... funded by the continued dis-proportionate taxation of the middle class.

Obama must be waiting for Buffett's check to arrive. Maybe on the magical misery tour he'll pick it up in Omaha. Since 98% of Buffett's income is tied up in a corporation, ohhhh that would really make the Lib base of Obama's even more irked at him. They don't think corporations are people. laughter.....

Obama- the American people don't deserve this"..... well he's right. No leadership is ridiculous. So go get Buffetts money, and Soros's money and Hollyweirds' money and Murdoch's money,,, all corporate entities..... Obama bends on principles again, and again, and again... what happened to Lib ideology? Is Hillary available?

Where is it written that Buffet or Obama or Soros or anyone else CAN NOT pay as much in extra taxes as their little hearts desire? Jump on it guys. Just shut up and send the government all your money. Leave the rest of us alone!

Witnessing FAILURE Are you mentally ill? Or you just enjoy, "OH LOOK AT MY COMMENT! Look how funny I am and how obvious this statement is!!"

Read Buffett's comments again. When a secretary pays more in taxes than the second wealthiest American, the system is broken. I'm sure Buffett isn't looking to give his money away, but merely wants to pay his fair share.

For all you dull, selfish, right-wing armchair activists, consider the growth of the rich verses the poor thanks to the Republican Reagan-era to present "trickle down economy" which trickled on working class America. The unfunded $3.7 trillion, 10-12-year, Bush tax cuts failed to create jobs as touted. In fact, Bush-Cheney created the fewest jobs of any modern administration. More jobs were created under Clinton (21 million) than Reagan, Bush I and Bush II combined and at higher tax rates.

• While more people dropped below the poverty level, America now has 396 billionaires or more than the next top10 industrialized countries combined. The next highest level is 72 billionaires in China. • One in six adult Americans is fighting hunger while one in four children face hunger daily. • Over 44 million or 14% of Americans are living in poverty with 50 million without health insurance. • 8.5 million people receiving unemployment insurance and over 40 million receiving food stamps. • At the current pace of job creation, the economy will not return to full employment until 2018. • The share of middle-income jobs in the US has fallen from 52% in 1980 to 42% in 2010. • Middle-income jobs replaced by low-income jobs, which now make up 41% of total employment. • 17 million Americans with college degrees are doing jobs that require less than the skill levels associated with a bachelor’s degree. • The average American worker in 2008 earned $400 less than in 1988, when adjusted for inflation. • Over the past year, nominal wages grew only 1.7%, while all consumer prices, including food and energy, increased by 2.7 %. • Wages and salaries have fallen from 60% of personal income in 1980 to 51% in 2010. • Transfers have risen from 11.7 of personal income in 1980 to 18.4% in 2010, a post-war high. • During past 20 years, 56 percent of all income growth went to top one percent of households. • One third of all income growth went to top tenth of one percent. • Adjusted for inflation, median household income declined over the last decade. • According to IRS study, wealthiest 400 Americans in 2007 brought in $138 billion. • The Internal Revenue Service tracks the tax returns with the 400 highest adjusted gross incomes each year. The average income on those returns in 2007, the latest year for IRS data, was nearly $345 million. Their average federal income tax rate was 17 percent, down from 26 percent in 1992. • Hedge fund managers are paying 15% tax on income while the top 25 make $1 billion each a year apiece. • Top 10 percent made 34.6 percent of America's income in 1980; by 2008, it was 48.2 percent. • Top one percent made nine percent of income in 1980; by 2007, it was 23.7 percent. • Top one-tenth of one percent makes as much as the bottom 120 million. • Top 400 richest Americans have more wealth than half or 155 million of all Americans. • 1970s CEOs made 40 times average worker; now, 350 times. • Average CEO salary at 456 large companies is $7.23 million. • Every time a corporate CEO gives himself a $15 million bonus, he cuts the salaries of 15,000 of his employees by $1,000 each. • Average wealth of the working class including property and retirement assets is $86,000 • Average wealth of millionaires is $3.5 million with annual income of $379,000. • Average wealth for Congressmen: $765,010 Reps.; $2.38 million for Senators. • Top one percent of Americans pays one-third less than 1970 in taxes. • Top one-tenth of one percent pays one-half less than 1970 in taxes. • Top one percent of Americans is worth $15 million. • 1951-1980, top tax rate was 70-92% with annual growth of 3.7%. • 1983-2008, top tax rate was 35-39% with annual growth of 3%. • In 2008, the Government Accountability Office found that “two out of every three United States corporations paid no federal income taxes from 1998 through 2005.”

It's called a "capital gains tax", because a majority of Congress thought, at one time, that it was a good idea to encourage people to create capitol. Of course, Krugman and Obama will never understand that.

"leave the rest of us alone." You make more than 1 million per year? Since you wrote "Shut up" twice in your post, I doubt your education provided the level of education that might make that possible. In spite of my doubts about your education, I will attempt to help you.

Suggesting that those that want to level the playing field and have a more balanced tax system should simply send in however much they want is akin to making the argument that those that think the speed limit on a highway should be 55 mph rather than 65 mph should just slow down, and LEAVE THE REST OF US ALONE. It does not address the root of the problem.

There's only two answers here. Well, goodness, not enough Obama controversy? The Corporate big wigs are never making enough money. Unfortunately, if you close their corporate loopholes you'll just get more unemployment. I think the American people should start their own reality programs, and literally write to the Corporates, and tell them to get their ass in gear. Obama is NOT the problem. He's had plenty of vision, and has done more than his fair share of change around here. The only reason we have slow growth, is that everyone believes that we are having slow growth, and want to keep it there, because of their complaining about Obama, and thinking that Romney and Perry will get them out of their depression. Wrong...it will get worse, a lot worse. Romney couldn't have accomplished what he did without the majority of democrats that were in his legislature. The Dems even had to fight for unemployment benefits he was so greedy, and feudalistic. He ran that State to the ground. Perry's inviting in the Chinese. His jobs creation...has always been Corporate America. Don't mess with the hand that feeds you. They don't like regulation. I'll take Obama. At least he isn't crazy...his people are the ones that give America a bad name. We were at 6000 and then we hit 13000 in the stock market Then the dimwhits started high jacking America. Ingratitude. No change, no jobs? I think it's time that all look at their sins. You'll find that the Stimulus Bill did work...the conservatives say it didn't. Economists predicted that this recession would take 5 years. He needs more money to go out to us, so he is still saying a little more money for this year. 2013 will be a different story, as long as the Death Congress is still voted in. you'll see more no more jobs, or revenue. See you in the bread line.

Buffett, like Bill Gates, Ted Turner, et al have already pledged to give the bulk of their wealth away. For the poorly-educated, and/or bigoted, Republicans have historically NEVER represented the working class. For all those working class right-wingers that post here, by supporting the Republican Party you only hurt yourselves, your families, and the rest of us.

Continuing to support the Republican's top priority of maintaining tax breaks and subsidies for the rich while cutting programs that benefit the poor, needy, children, the elderly and the working class is morally bankrupt and un-American. Republicans and their baggy spawn prove, by their actions and proposed bills like the Ryan Plan, that they are faux patriots, (wrapping themselves in the US flag under which few have ever served); faux Christians, (who care about nobody but themselves); and faux populists, (representing a minority of a white minority).

Lord, I know this is too soon to be thinking about a party. But finally Obama has made a RIGHT decision. He is on a BUS headed out of Washington. He has finally found the true place that we think he deserves. On a bus headed out of town.

No, Buffet is incorrect! Had Buffet paid taxes he thought were appropriate, then he would have been correct. Lobbying and looking for forgiveness counts for nothing. Obama's right hand, GE, should be dissolved under the iron hand of our president.

It amazes me that many of the comments about Mr. Buffet's suggestion to increase taxes on the rich (generally those who do not "work" for a living but have their money make more money) are so hostile, even from those in the "middle class".

The two dominant suggestions are:

- just send the government some money ... well, that does not address the problem; the middle class is forced to pay taxes (at a generally higher rate than the rich, i.e. regressive) while they wealthy should be allowed to OPTIONALLY pay higher taxes????

- instead of having the rich payer more taxes, why not reduce the tax rate for the middle class and poor? - on the face of it an appealing idea, but (a) that only increases the deficit problem, and (b) that would require even more drastic cuts to the programs which the middle class and poor often need just to survive, and/or reduce infrastructure spending (desperately needed to just catch up to the rest of the industrialized world) even more which will hurt all of us.

It is very interesting that in the US a large part of the electorate is so brain-washed with meaningless slogans ("don't tax the job-creators" is complete hog-wash) that they vote against their own interests, which is unique among democratic countries.